Too many coffee shops? But Caffe Nero plans more

It may seem as if there is a coffee shop on every corner, but Caffe Nero, the third biggest chain in Britain, says there is room for many more.

The privately owned company has 480 outlets but said in its latest accounts it believed there was potential for ‘at least’ 700 Caffe Nero coffee shops.

Even so, it would be small fry against its rival Costa Coffee, which has 1,480. Starbucks has 750 outlets.

The British appetite for frothy coffee shows no sign of abating. Caffe Nero’s latest accounts reveal turnover for the year to the end of May at £185 million, up from £166 million, while profits rose from £17 million to £19 million.

However, due to ‘group relief’, which enabled it to offset the losses of an investment company in the group against its taxable profits, it paid no tax during the financial year.

The coffee shop industry is estimated to be worth £2.1 billion, and has doubled in value since 2005.